3. Variations in agency service.—As has been said, all agencies do not do all of these things. Some are specialists in certain lines of advertising; others are mere counselors, without machinery for putting their suggested plans into effect. An agency's activities may go beyond the planning of advertising campaigns and the preparing of advertisements, or they may stop short of these things. All agencies that are worthy the name, however, base their recommendations on intensive study of a client's marketing difficulties in all their aspects, and then, to the extent that their equipment permits, they help advertisers to solve their publicity problems, to establish advertising policies and to put those policies into effect.
It is estimated that over ninety-five per cent of all national advertising in the United States is placed thru advertising agents, and a very considerable part of the local and territorial advertising is also prepared and handled in this way.
4. History of the advertising first ad vertising agency was established in 1840 in Philadel phia, by V. B. Palmer. In 1899, there were forty-one advertising agents. Today there are approximately 300 "recognized" agencies, while there are probably 150 other concerns attempting to conduct an agency business, but not receiving what is called "recognition" from any publishers' association. In addition, there are probably a thousand other individuals and organ izations, who in limited fields of merchandising, copy and art assist advertisers with their campaigns.
In the beginning, the business of the advertising agent was very simple. He obtained permission to represent a list of newspapers, and called on pros pective advertisers persuading them to "place their card" in a number of these newspapers. In those days, the papers for the most part had no established rates; the agent would make a rate to suit himself, paying the publisher as small a proportion of the amount collected as he could persuade him to take. If the advertiser neglected to pay the agent, the agent was not held responsible for the space used.
In the early days, the basis of charge for advertis ing space was the "square." The publisher would divide a column into so many squares in which would be placed advertising "cards." The copy was seldom changed. In fact, some advertisements were used without change for from twenty to thirty years. The reader may recall "squares" used for long terms of years without substantial change of copy by Royal Baking Powder and Lea & Perrins Worcestershire Sauce.
In 1865, George P. Rowell established himself as
an advertising agent, and it was he who introduced the plan of buying from the publishers a column or more of space in a list of 100 newspapers, dividing this into inch squares, taking full responsibility for payment, and on his own terms selling the inch squares to advertisers on annual contract. Some of this retailing of space was continued up to as late as the beginning of the twentieth century. A few people still believe that an agency is a dealer and has on hand contracts for space which he must use within a speci fied time and which he is, therefore, willing to sell at reduced rates. Advertising agents no longer oper ate in this way. The modern agency represents no particular mediums. It represents primarily its cli ents' interest, and places advertisements only in those mediums that can do the most to aid in the sale of its clients' goods.
While the advertising agent has guaranteed pay ment for the space used by his clients ever since the time of the Civil War, and has written copy and placed advertising from the beginning, it was not until about 1900 that agencies established their own art departments and began to render the general merchandising service that many of them render to day. .
5. Publishers' representatives.—The early agent, of whom Mr. Rowell was a type, in buying space in selected papers and selling only that space, exercised a function of the modern "publisher's representative." A publisher's representative is the appointed repre sentative of one or more publishers. It is his duty, in a certain territory, to call on advertising agents and on advertisers, presenting the merits of the publica tions he represents, and endeavoring to induce agents and their clients to place their advertisements in those publications.
6. Agency's service to publisher.—Altho the pub lishers of some classes of periodicals do not "recog nize" advertising agencies, most publishers welcome the services of the agent and are glad to have him act as a valuable middleman between themselves and their advertisers. One reason for this is that pub lishers cannot keep as closely in touch with their advertisers as the agency can; also, it is much easier for a publisher to handle the accounts of a few agents than it would be to carry the accounts of many in dividual advertisers. One publisher finds that ninety per cent of the accounts he receives from the agencies are paid promptly every month, while only forty eight per cent of the accounts he receives direct from advertisers are paid in this way.